Fitch drops Standard Pacific to CCC

Fitch Ratings said it downgraded Standard Pacific Corp.'s issuer default rating to CCC from B-, secured borrowings under its revolving credit facility to B+/RR1 from BB-/RR1, unsecured borrowings under its revolving credit facility to CC/RR5 from B-/RR4, senior notes to CC/RR5 from B-/RR4 and senior subordinated debt to C/RR6 from CCC/RR6.

The outlook is negative.

The downgrade reflects the very difficult U.S. housing market and Fitch's expectations that the housing environment will remain challenging for the remainder of the year and perhaps into 2010, according to the agency.

The action also reflects persistent negative trends in Standard Pacific's operating margins and further deterioration in credit metrics, the agency noted.

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